No Retirement Savings

No Retirement Savings and Nearly Out of Time? Here’s How to Compensate.

Countless older workers are about to end their careers without money in the bank. Here’s what to do if you’re one of them.

Article I found today from the Motley Fool. Maurie Backman (TMFBookNerd)

Though we’re told to prioritize retirement savings during our working years, it’s estimated that nearly half of U.S. households have no money set aside for the future. Now, if you’re in that camp but still have a number of working years ahead of you, there’s plenty of opportunity to catch up. But what if you’re well into your 60s without a dime saved?

It’s certainly not an ideal scenario, seeing as how you can’t live off of Social Security alone. But here are a few things you can do to make up for your lack of savings.

Work a bit longer

So you’ve reached your full retirement age for Social Security purposes, and you’re gearing up to call it quits. Not so fast. Though you may not have any savings, or a salary that enables you to save, if you continue to work a bit longer, you’ll have the option to hold off on filing for Social Security, thus boosting your monthly benefits.

For each year you delay benefits past full retirement age, your monthly payments go up by 8% until you turn 70, at which point the incentive to wait runs out. So let’s assume your salary is just enough to pay your bills, but nothing more. If your full retirement age is 67 but you hold off on benefits until 70, you’ll wind up collecting 124% of the amount you were initially entitled to. And that’s a good way to help compensate for absent savings.

Work part-time in retirement

Maybe you no longer have the energy or option to continue working a full-time, 40-hour-a-week job. But if you’re able to work part-time as a senior, that income, combined with your Social Security benefits, could be enough to get by on.

Best of all, you don’t need to take any old job to pay the bills. Retirement is actually a great time to start a business, so if there’s something out there you’ve always wanted to do, here’s your opportunity. In fact, seniors 65 and older are more likely to be self-employed than any other age group, according to the U.S. Bureau of Labor Statistics. So whether it’s consulting or crafts, find something you enjoy doing, and use it as a means of sustaining yourself.

Monetize your home

So you’re lacking in savings and aren’t looking to work part-time when you’re older. If you’re a homeowner, you’re not totally out of luck, since there are several ways you can turn your property into an income stream.

For one thing, you can try finding a full-time tenant and collecting rental income throughout the year. This will work well if you have a finished basement, garage, or other segregated area of your home. Another option is to rent out your home seasonally, which is doable if you live near popular attractions like the beach or a major theme park or ski resort.

If neither option is feasible — say, you don’t have the space to have other people take up residence in your home — you can look into a reverse mortgage, which will give you a cash payment each month to help cover the bills. Reverse mortgages, however, come with their share of drawbacks, so don’t rush into one without doing your research.

Entering retirement without savings is a scary prospect, and one all workers should take steps to avoid. But if that’s the situation you’re faced with, don’t panic just yet. You do have options for generating more income once your full-time career comes to a close. Exercise them wisely, and you just might salvage your retirement after all.

The $16,122 Social Security bonus most retirees completely overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,122 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.

For local Reverse Mortgage questions and to start a Reverse Mortgage call Scott Underwood in Birmingham at (205) 908-2993, in Huntsville at (256) 677-9767, or email ReverseMortgageAlabama@gmail.com.

LICENSING

MORE LINKS

**The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, you are required to consult with a qualified independent housing counselor and include family members and other trusted advisers before making this decision. This information is not from HUD or FHA and was not approved by HUD or any government agency.